Though the tax season is over, it doesn’t mean that you’ll also stop thinking about your taxes. In fact, small business owners, especially sole proprietors, are particularly at risk of being audited by the Internal Revenue Service (IRS). This is because the IRS believes self-employment incomes are grossly under reported, according to experts. That's why, even though the tax season is over, now is still a great time to make sure your tax planning strategy is solid and know how to avoid an audit.

This year may be quite different considering the tax changes that have and will be implemented. It is best to be acquainted and informed about these to avoid being sanctioned by the IRS as well as to better know one’s rights.

If you haven’t yet made use of your accounting software to do the calculating of your taxes for you, then it’s time to do so.

As the end of financial year is fast getting closer, now is the time for small businesses to start getting their tax in order, using their small business accounting software, and to psych up in leveraging some law changes set to commence in the new financial year.

Having just finished filing your income tax last month, yet forgot to include your use tax? If you’re busy, you can avail of small business accounting software that will help you work out your use taxes.

What is Use Tax?

It is a type of excise tax imposed goods or certain services used, consumed, or stored in a particular state where sales tax has not been paid.

Generally, use taxes are the tax that you accrue when you purchase an item without paying your home state's sales tax and you use, give away, store, or consume that item in your home state.

It may seem like the end of the financial year is a lifetime away and working on your taxes an eternity.
But, there’s no best time like today for shrewd small business owners to start planning, coordinating and developing their personal and business end-of-year tax saving strategies of deferring income where possible until July 1 while maximizing deductions by June 30 to take full advantage of changing tax-saving opportunities and to sidestep a range of looming tax traps; thus, saving more of their hard-earned profits, as well as eliminating headaches and possible IRS difficulties down the road.

Search

Share This!

Software for Accounting

Looking for easier software? Payroll giving you headaches? Can't find the right bookkeeper? Behind with the accounts? Then what you are looking for is at Shoebooks! Shoebooks Bookkeeping is the leading provider of online accounting software for small and medium-sized enterprises in Australia and New Zealand. Experience the advantages and benefits of using accounting on line with Shoebooks bookkeeping software solutions for inventory, payroll software, and invoicing needs of your businesses.